Legislative Update - July 11, 2024
Prop. 33 is Rent Control Ballot Measure
The November ballot measure proposing to repeal Costa-Hawkins protections for property owners and expand rent control has been assigned Proposition 33. Prop. 33 is the single biggest threat to rental property owners in our State by:
- Eliminating our right to increase rents to market rates upon a vacancy.
- Expanding rent control to single family homes, condominiums, and newly constructed rental housing.
- Reducing rental income.
- Reducing rental property values by as much as 40 percent, as seen in New York after rent control was implemented.
Click here to learn more and support the efforts to defeat this dangerous measure!
SCRHA Advocacy Delivers Wins on State Legislation; Work Continues on Priority Bills
As SCRHA previously reported, several opposed bills will not move forward this year, including the dreaded pet bill, AB 2216 (Haney). We are pleased to report that AB 2347 (Kalra), which adds days to the unlawful detainer process, is poised to be amended to remove one section of major concern, rendering the bill far less troublesome. SB 611 (Menjivar) as originally drafted would have added a litany of requirements for rental housing advertisements, including costs and fees that might be impossible to know at the time of listing. It would have also restricted change in terms of tenancy for items not advertised when tenants signed the lease, and more. The bill was strongly opposed by SCRHA and has been “gutted and amended” to now address higher than advertised deposits for service members and the refund of additional deposits. SCRHA is still seeking a minor amendment for clarity but is very pleased that the bill no longer poses onerous rules and restrictions related to advertising. AB 2114 (Irwin), which SCRHA supported, has been enrolled to the Governor and will add licensed civil engineers to the types of inspectors eligible to perform visual inspections of exterior elevated elements for which a homeowners association (HOA) is responsible. We are also happy to report the following bills will not be moving forward this year:
- AB 1333 (Ward) – This bill would have restricted the bundled sales of single-family homes.
- AB 2584 (Lee) – This bill would have restricted certain business entities from purchasing or acquiring single-family homes.
- SB 1201 (Durazo) – This bill would have placed additional reporting requirements on beneficial owners of residential property.
SCRHA is still working to stop AB 2747 (Haney), which will require positive rent payment reporting and AB 2801 (Friedman) which would restrict the use of security deposits and add significant administrative burdens at the beginning and end of a tenancy. The Legislature is in recess until Aug. 5 at which time we can expect these bills to move quickly. Make sure you are signed up for SCRHA Action Alerts.
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